Kenn Hoekstra, formerly of Raven Software, made
a post to our forums on the Soldier of Fortune: Pay Back rumor mentioned
earlier (story), as he is a leading authority on the SoF
franchise (and, of course, KISS). While Kenn's post confirms the project is in
the works, he also confirms Raven is not the developer, and that this will be a
value-price project: "Raven isn't developing this game. And it's Activision
Value that's publishing it."
FiringSquad has a story speculating this will be a budget title (which we
have seemingly confirmed), and they also say an anonymous source has named
Cauldron as the project's developer.

To hear that SOF III could be in the hands of developer Cauldron has just made my day, no matter what anyone says Chaser was a true gem of a game and still remains one of my most memorable fps experiences.

Completely agreed, Chaser is without any doubt the best DX8 shooter ever made. I enjoyed every bit out of it. This game was the peak of the DX8 era.